Intoxicating Liquors FAQ 18

How does a municipality calculate the initial number of "Class B" reserve liquor licenses it held under the current quota law?

Each municipality in this state that
is not dry by referendum has a statutory quota for "Class B" liquor
licenses. A municipality's full quota is based on the number of licenses
granted or issued in good faith and in force on December 1, 1997, plus
the number of reserve "Class B" liquor licenses the municipality is
authorized to issue. Notably, the "Class B" licenses issued to wineries
under Wis. Stat. sec. 125.51(3)(am) do not count towards the quota.

The initial reserve "Class B' license
quota calculation involves several steps. First, take the number of
"Class B" liquor licenses authorized to be issued by the municipality
under the old quota system as of December 1, 1997.

Note: A municipality's quota was based,
prior to December 1, 1997, on the number of licenses issued in good
faith under Wis. Stat. 176.05(21)(h) (1975), and was adjusted for
annexations and detachments plus whichever of the following was the
largest:

1. one per 500 population or fraction
thereof as determined in the previous year by the Department of
Administration under Wis. Stat. sec. 16.96(2) for purposes of revenue
sharing distribution;

2. the number of "Class B" licenses lawfully issued and in force on August 27, 1939, when the quota law went into effect;

3. the number of "Class B" licenses lawfully issued and in force within the municipality in the previous year;

4. in the case of a village or city
incorporated since August 27, 1939, one license per 500 population or
fraction thereof at the time of incorporation; and

5. in the case of a municipality
incorporated or organized since August 27, 1939, the number of licenses
in effect in the territory at the time of incorporation or organization.

Wis. Stat. sec. 125.51(4) (1995-1996).

Second, subtract from that number the
number of "Class B" licenses actually granted or issued by the
municipality and in force on December 1, 1997. If your municipality had,
as of December 1, 1997, already issued all the "Class B" liquor
licenses it was authorized to issue under the old quota system, then
your municipality had no initial reserve "Class B" licenses as of
December 1, 1997.

If your municipality had three or less
"Class B" liquor licenses that were authorized under the old quota
system but not granted or issued as of December 1, 1997, those three or
less licenses constituted your initial reserve "Class B" licenses quota.

Third, if your municipality had more than
three unissued "Class B" liquor licenses as of December 1, 1997, it is
necessary to engage in a few more calculations. Begin by subtracting
three from the number of unissued licenses. Then, divide the remaining
number of licenses by two. If the result after division is a fraction,
round down to the next whole number. Finally, add back three licenses.
The number that results from working through these steps is the
municipality's total number of initial reserve "Class B" licenses as of
December 1, 1997. Wis. Stat. sec.125.51(4)(br).

A municipality's initial quota of "Class
B" reserve licenses and current quota may be different. An increase in a
municipality's initial quota of "Class B" reserve licenses may occur
through an increase in population, as determined by the Department of
Administration for revenue sharing purposes. Wis. Stat. secs.
125.51(4)(br)1.e and 125.51(4)(br)2. should be reviewed for this
purpose.